The DOW’s winning streak ended yesterday as Wall Street closed 14 points lower.
DOW futures are also trading another 80 points lower this morning after losses on both of the major Asian markets overnight. The Nikkei225 has closed lower by 75 points but the Hang Seng has suffered losses of almost 2% as we approach the closing bell. The daily loss currently stands at 541 points.
As I mentioned on Monday, trade war fears and hopes of a rate cut are cancelling each other out at this point. This now being widely accepted. Whilst the markets are pricing in this rate cut I am less convinced. With the G20 ahead and the possibility that fractious relationships will become more fractious, there is no change in approach.
Looking to sell DOW and DAX, ideally on rallies from this point, buy GBP/USD, ideally on dips below 1.2700